Vita sales continue to disappoint as Sony scales back expectations

Portable game makers continue to adjust to a smartphone-dominated world.

Back in May, Sony was confident that its newly launched Playstation Vita and aging PlayStation Portable would combine for a robust 16 million in sales for the fiscal year. Three months later, having sold only 1.8 million portable systems, the company lowered that forecast to 12 million units. Now, after another quarter of weak sales, the company has scaled back expectations yet again, reducing its projection to 10 million portable systems for the year ending March 31, 2013.

Worldwide, Sony sold 1.6 million portable systems in the last three months, less than the 1.7 million PSPs it sold during the same period last year, before the Vita was even on the market. While Sony didn't reveal specific sales numbers for the Vita and PSP separately, it seems pretty clear that Sony expected its newer portable system to make up for declining PSP sales. Instead, the weak portable performance has helped drag Sony's game segment to a ¥1.3 billion ($16.2 million) loss for the first half of the fiscal year, down from a ¥7.1 billion ($88.6 million) profit last year.

Sony's report comes just a week after Nintendo also lowered sales expectations for the 3DS by 1 million units for the year, citing tough competition from mobile and tablet games. It seems both companies were overly optimistic about the market demand for dedicated portable game hardware in a world now dominated by smartphones, tablets, and 99¢ downloadable games.

That doesn't mean there's no place for these dedicated portables anymore—both Sony and Nintendo are still selling millions of units, after all. But both companies obviously expected those portable systems to contribute more to their bottom line, and will have to adjust to a world in which portable games are not the strong, reliable money makers they once were.

For Sony, at least, there are signs that this might not be much of a problem. Combined, the company sold 3.5 million PS3s and PS2s during the last quarter and is still on track to hit its expected target of 16 million home systems sold for the full fiscal year.

Kyle Orland
Kyle is the Senior Gaming Editor at Ars Technica, specializing in video game hardware and software. He has journalism and computer science degrees from University of Maryland. He is based in the Washington, DC area. Emailkyle.orland@arstechnica.com//Twitter@KyleOrl

76 Reader Comments

I know a price drop is not in the card for this year as Sony is already bleeding money on the Vita but I think until its sub $199 with a few more hit titles it's going to stay put on shelves. I'd love to get one for Persona 4 but I'm not paying $250 plus memory card costs just to play one game.

It's not going to even hit the 10M prediction without a significant price cut. It's neat hardware, but I just don't think there's ever been much buzz around the system. Portable gaming's future is either iOS or Android.

The 3DS is getting Monster Hunter 4, Dragon Quest 7 and (probably) Pokemon in 2013, and is on track to dominate the Japanese market. It's in pretty good shape.

Sony's lumped PSP and Vita together, but its forecasts have plummeted from 16m to 12m and now to a 10m forecast that's still wildly optimistic. The Vita's doing terrible sales numbers, and it seems Sony's dedicated their resources to the PS4 instead, so there's little in the pipeline that could spur a turnaround.

Despite both being under the same market pressures, their conditions and outlook are quite different.

It's really the same as I've said about Nintendo, but even more relevant: Sony should drop the PS portable hardware segment, and simply work with developers (both external and internal) to publish their IPs on iOS and Android. They could price their games at a relative premium level for those platforms ($5-$15) and have millions of sales instantly...and rake in some profits.

I really wish Sony well, and hope they can turn things around although their entertainment division is fairing much better than the other divisions.

The 3DS is getting Monster Hunter 4, Dragon Quest 7 and (probably) Pokemon in 2013, and is on track to dominate the Japanese market. It's in pretty good shape.

Sony's lumped PSP and Vita together, but its forecasts have plummeted from 16m to 12m and now to a 10m forecast that's still wildly optimistic. The Vita's doing terrible sales numbers, and it seems Sony's dedicated their resources to the PS4 instead, so there's little in the pipeline that could spur a turnaround.

Despite both being under the same market pressures, their conditions and outlook are quite different.

Making some of the Japanese-exclusive system "color" options available outside Japan would also help the 3DS with sales. For instance, last week I saw a Japan-exclusive black 3DS-XL with an outline of Charizard using Flamethrower on it. The outline almost looked like a tan color, but the Flamethrower was in a Red/Orange typical depiction of fire colors. The artwork on that one actually extended from the top of the lid down onto the bottom of the system. I have a 3DS (pre-ordered from launch), but I would totally pick up a 3DS-XL as well if there were more compelling options than red or blue.

It's a shame, really... The Vita is a nice device that you just have to hold in your hands and play with a bit to appreciate. It does need two critical things, however. First, as much as it hurts (and in consideration of your reasoning, donlo), they HAVE to drop the price a little. Of course, in order to recuperate from the losses there, someone at Sony needs to drive developers to make games for i - Original games that make clever use of the interface at hand, and PLEASE! No more lousy ports of PS2 titles... PSP had enough of that. If Sony can get those two things accomplished, Vita just might be poised for a comeback.

I'll also credit Sony for doing a few things right. The "buy it once" policy is hopefully a trend that will continue for PS3-PSVita cross-play titles and DLC. That, combined with features like MLB 12's compatible save feature will makes strides in portable gaming. I bought in early - and I do hope that the Vita catches on.

It's really the same as I've said about Nintendo, but even more relevant: Sony should drop the PS portable hardware segment, and simply work with developers (both external and internal) to publish their IPs on iOS and Android. They could price their games at a relative premium level for those platforms ($5-$15) and have millions of sales instantly...and rake in some profits.

I really wish Sony well, and hope they can turn things around although their entertainment division is fairing much better than the other divisions.

Unfortunately, Sony (and Nintendo for that matter) will not license their IPs to other developers. Nintendo tried it in the 90's and got burned pretty badly (remember that Phillips system that had 2 horrendous Zelda games?).

The era of charging $30 for a single mobile game is over. Like the record industry, dedicated mobile gaming devices like the Vita and DS will have to evolve to allow more competitively priced downloadable games on their platforms, or they are going to go the way of the audio CD.

The era of charging $30 for a single mobile game is over. Like the record industry, dedicated mobile gaming devices like the Vita and DS will have to evolve to allow more competitively priced downloadable games on their platforms, or they are going to go the way of the audio CD.

I'm honestly surprised that more game companies haven't adopted the model that SEGA did with Sonic the Hedgehog 4, releasing a full game in smaller portions, charging less for the portions, and by the time it's the size of a "full" game, it will still have cost the same to those who don't wait for a discounted price. Instead, they're relying on making a "full" game that in some cases isn't even truly finished, charging full price, then having an expansion immediately available, or forcing players to pay for extras that are already on the disc but locked-down until they pay for the unlock data.

I used the term "full" in quotations in this comment due to the fact that even a small game like Tetris can be considered a "full" game. I'm referring to completeness of a game's intended story.

Why would anyone buy a Vita when the games they want for it are on the psp, 3DS, or a PS1 game?

Step it up Sony, start playing ball and pay for exclusives or pay to stop being excluded on game development.

A smartphone or tablet is NO substitute for a handheld gaming console. They may be alternatives to your entertainment needs, but that doesn't make them a replacement. That's like saying those little joysticks you plug into your tv to play Atari games are a substitute for modern consoles.

The Vita is not doing well for one simple reason: no good games. While people like to tout gaming on mobile devices as the harbinger of the end of dedicated handhelds, its just not true (yet). The vast majority of mobile games are cheap, gimmicky, and lack depth. That is not to say there aren't a few exceptions though. The main reason I feel mobile devices can't fully replace a dedicated handheld is the touch based interface. Its more difficult to work with, you have to give up screen real estate (more so if you want more buttons), and its not terribly precise.

The dedicated handheld does not have these limitations, but at the same time it lacks the quantity of games and mass appeal. They really need to pull together some really great games if they want to sell those systems. This is where I believe region bounding is hurting them. They aren't localizing a lot of the great games being released in Japan which is what they need the most right now.

I want a Vita. I mean, REALLY want a Vita. I think the handheld is incredibly cool, and think it would serve me well if I purchased it.

But the expected cost is Just. Too. High. $250 min for a system. All of the accessories, especially memory cards, seem prohibitively expensive. By the time I end up getting a few games and a larger memory card to have space for digital downloads, i'd expect to spend near $500. I can see myself doing that for a console, but I can't rationalize it for a handheld, no matter how cool I think it is.

It's really to bad, it's probably the best portable gaming system on the market right now. It just seems to be lacking in games!

People keep spouting this out and it's just absolute nonsense. The Vita has a veritable shitload of games - I've got two full 16GB memory cards to prove it. Look guys, just because you go to GameStop and they have like a total of six Vita titles on the shelves doesn't mean that's all that's available. Every single Vita retail release has a matching digital release on the PSN, so there's like sixty games available already and the system isn't even a year old. October and November alone have enough AAA Vita titles coming out that I am considering grabbing another memory card and springing for the 32GB option.

The Vita is hands-down the best handheld system I've ever played, and it's a shame to see it doing so poorly in sales. If Sony would drop the price fifty bucks and bundle at LEAST a 4GB memory chip with each unit, they'd fly off the shelves.

After 7 years things fixed with my PS3 :- uh .... the store has a new look

After having a PSP :- super slow to start games- outdated interface- long update process- console games badly shoehorned onto a portable device

Things I noticed while trying out the Vita at stores :- super slow to start games- outdated interface- console games badly shoehorned onto a portable device

I decided not to drop $250 to see if they fixed the bad update system.

As usual with Sony. The hardware looks and feels amazing. The entire software experience is from 1998.

I actually agree with Sony's original Vita commercials. I am actually looking for more in gaming than what mobile offers. However I've cast my towards the 3DS. I loved my DS. And the 3DS XL now has the right combo of games, price, and pick up and play.

I too like the Vita. It is not too big or too small and is quite comfortable to hold but it is just too expensive. $250 + memory card costs adds up and there really aren't that many games the I want to play. The big reason why I don't have a 3DS or Vita is because I already have one device (phone) which does well enough at keeping me entertained and I really don't want to carry anything else with me. Sure a phone may not have very deep games but for $1-$5 per game they are cheap enough that I can acquire a wide variety for a small amount of money. And if I don't want to play any games on my phone I have access to the internet.

I was actually thinking about picking up the Vita this weekend. I really want that AC bundle and have been dying to play Uncharted Golden Abyss. My only fear is that the system will be dead in the water 6 months from now. Much like the PSPGo.

I own a Vita and enjoy the hell out of it but beyond launch there hasn't been much to excite me.Give me games and I'll buy them. I don't want dumbed down ports (LEGO: Lord of the Rings). I don't want gimmicky gameplay (Uncharted Vita and AssCreed: Liberation). Give me solid full experiences that I can play for a bit then put down. More games like Smart As... and Disgaea 3 (a better version than the original) and games where the systems abilities can be put to good use like Okami HD.

Hell give me a Metroidvania game and I'll throw money at you.

Right now Disgaea, Mortal Kombat, BlazBlue, and Pinball Arcade are 90% of my Vita game time, the rest are PSP games or PS1 classics.

I can game on the Surface tablet I bought a couple of days ago. It's almost as portable as a Vita or a 3DS XL and can do many times more things than either device can. Plus, the games are cheaper (in some cases, like Adera or Wordament, even free), so why would I ever bother getting a portable gaming system that can play games but can do little else but surf the web and play back music?

Okay, so there aren't so many games on Windows RT just yet, but the Vita doesn't have very many games either.

Handheld gaming consoles are dead.

Your Surface can fit in the front pocket of your pants? Deliver as rich an experience as NFS:MW(the full console version) or Pokemon Black 2? Tablets and smartphones are missing the good controls, and larger better games of handhelds. Sure they can sometimes be graphically equal, but it doesn't matter that shadowrun or whatever looks better than a 3DS game when the controls are so bad and it eats all my phones battery in like 2 hours. Handhelds may be dead for you but they are not dead for many others. And other than office Stuff there is little a tablet does that a 3ds or vita cannot.

I was actually thinking about picking up the Vita this weekend. I really want that AC bundle and have been dying to play Uncharted Golden Abyss. My only fear is that the system will be dead in the water 6 months from now. Much like the PSPGo.

Decisions, decisions....

I would advise you to wait until the next quarter closes out. If Sony drops its forecast for PSVita sales (or they don't meet the mark, I don't remember if it's a calendar or fiscal year), then stay away. If the forecast remains the same, then go ahead.

I can game on the Surface tablet I bought a couple of days ago. It's almost as portable as a Vita or a 3DS XL and can do many times more things than either device can. Plus, the games are cheaper (in some cases, like Adera or Wordament, even free), so why would I ever bother getting a portable gaming system that can play games but can do little else but surf the web and play back music?

Okay, so there aren't so many games on Windows RT just yet, but the Vita doesn't have very many games either.

Handheld gaming consoles are dead.

Well for a start from this review: http://www.eurogamer.net/articles/df-ha ... -rt-review it sounds like the Surface has atrocious gaming performance even for the most basic of 3D games so if you're looking to play the more demanding type of games you can get on 3DS or Vita then given that review it looks like the Surface (WinRT version) is a poor choice.

Also you're ignoring the fact that portable games systems are much more portable than a > 10" tablet.

Finally, the Vita and 3DS are considerably cheaper than the Surface (sure if you buy enough games it might swing back the other way but I think games for the Vita and 3DS are likely to be proper games rather than phone/tablet games which might swing it for you).

Disclaimer: Own none of the the devices. If I were to get any of them probably I would get the Surface (full Windows version not WinRT so long as battery life is OK) with dockable keyboard as a netbook replacement.

The portable gaming console market isn't dead, but it is a lot smaller. Sony's problem is that now a prospective buyer isn't weighing "Buy a Vita for $250 or not play games on the go?" Now she is weighing "Buy a Vita for $250 or just play the games I already have on my phone/tablet?" In a sense, Sony is competing with free.

And when you add in overpriced proprietary memory cards, $50 per game vs free/$.99, another device to carry, the picture gets worse.

As a parent - who doesn't really care "how good" the games are - it's a no-brainer.

I think Vita is amazing hardware, but like many others here, I can't justify dropping $250 + absurd memory card prices + a couple of games. Especially when I can download something stupid on my iPad for a quick time waster. And if I hate it, I probably only spent $1 - $2. If I drop $30 - $40 on a Vita game and hate it, I'm lucky of I can sell it or trade it for a third of what I paid. My suggestion, if Sony is listening, to part me from my money include:

- better bundles. I was tempted by the Madden bundle, until I saw it wasn't playable out of the box because no memory card. If you are going to make a bundle, make a bundle that has everything a newbie to the system needs to get started. Don't make the customer feel stupid or burned because they just dropped a lot of money, only to need to drop more money just to use the system properly. The late PSP bundles included the memory stick and all--please go back to that.

- more/better minis. Like it or not, boxed titles that all cost the same whether it's a AAA game, an annual roster update, or "Babyz on Parade" is a dead model. $1 tablet/phone games aren't going away, and Vita needs to acknowledge and compete in that arena.

- Improve DLC. Mostly I'm looking at COD or EA Sports. Just sell me a game, with a subscription for an annual roster update and current year schedule. You'll get more of my money than you do today when I buy a new version every three or four years and do internet searches for people who have done all the legwork to update the rosters.

- More "Buy it once, play it anywhere" ideas. This is a great idea--especially games like MLB to be able to pause a game and pick up again on the handheld (like when my kids want to kick me off the TV...). And don't make me buy the game twice in order to enjoy this functionality. Let me just download it from my PS3 using a code that comes packaged with new games (see--I'm willing to allow incentives to get me away from buying used games).

I don't think any of my ideas are unreasonable, but they do require some execution from Sony and their publishers. Dedicated handheld gaming isn't dead yet, but if they don't listen to consumers and play to their strengths, then they will lose to Android/iOS.

Sony can't seem to catch a break, they don't seem to get much right these last many years. I'm not sure what happened to them, they used to be a real power house. I do know they have always been big on using proprietary technology which always left a bad taste in my mouth.

The Vita is too expensive to be a top-seller in a world where a big chunk of the market is satisfied with their smartphones and tablets. That's the heart of the problem.

It could do a lot better if it was less expensive (as the 3DS has shown). With it's current price, the number of people willing to buy both it and a game they see and want to play just isn't high enough. That in turn will chase off developers, which will further chase off users.

In order to compete with phones, you need to get closer to "must buy" territory, and you can't get there when the price is chasing people off.

Also you're ignoring the fact that portable games systems are much more portable than a > 10" tablet.

Not if you're already carrying the tablet for something else. In that case the tablet's gaming portability is free (you already had it due to the other reason), vs a Vita which takes up more space.

Quote:

Finally, the Vita and 3DS are considerably cheaper than the Surface (sure if you buy enough games it might swing back the other way but I think games for the Vita and 3DS are likely to be proper games rather than phone/tablet games which might swing it for you).

Once again, only if you're looking at games and don't use it for anything else. What makes tablet gaming so successful is that people have tablets for something else. My iPad has my books, my mobile Internet, my music, movies, some work stuff, AND games. I'm taking it everywhere I go because it's got everything on it. The games are just a bonus, but since it has them I get them without having to pay for or carry another device.

Now if someone wants to get me to pay for and carry another device for games, they need to sell me on it. That's a much harder proposition then it was a few years ago, which is why the market shrank. Nintendo countered it with a price cut to make the sale easier, but Sony refuses to.

If you're dead set on playing the latest AAA games, then you're an easy sale. Sony's trouble is that a big chunk of the market isn't like that and is happy with simpler games that their tablet can already do, on a device they already own, with per-game prices a tiny fraction of what Sony wants people to charge. This is not a winning market position.

I considered buying one but the proprietary memory card and the cost of them was enough to keep me from buying one. I also was underwhelmed by the number of games that were available. If they drop the price of the Vita and substantially lower the price of their proprietary memory cards I would reconsider and think about getting one, but until those issues are addressed I will not be buying one. Would be even nicer if they put out some actual good games for it that would be an added bonus.

Speaking for myself, I would have loved to have purchased a Vita but after the way they handled the PS3 there is no chance of me purchasing something from Sony again. Fool me once...

I've tried it out and it is a neat little device. They built a technically sophisticated device, but they really are not interested in catering to the techies. Knowing that any time they may end up removing features is always going to be a deal breaker.

Also, proprietary memory cards? They are small and expensive which is silly because this is a limiting factor as to how many games a person can actually download/install. If a new game comes out and you don't have space and all of a sudden it will cost $100 bucks to get the same on your system, that is a huge deal breaker. They should have included a memory card in the system, and if they want to be proprietary then the cost of the memory cards needs to be the same as other memory cards. If they wanted to make money on peripherals, why not just pump out sd/micro cards and sell those?

First off I'm not a gamer. Second, I won my Vita so I haven't spent any money on it. As a casual gamer I like it. I got Hot Shots golf with it because the game I had wanted with it, Little Big Planet, was held up being released. LBP came in last week though. I have to say it's a pretty fun system to play on. I even loaded a few movies on it for a business trip I had to take and it was great on the plane. Although I like it and I play on it almost every day there is no way I would have bought it. $250 for the system, propriatary memory card, and $40 - $60 for games is insane. Plus there is no game for it that I feel like I have to have it. It would be great if I could get some of the games I have on my phone. The larger screen would make them more enjoyable and would save me battery life on my phone. I don't really see the portable platform as one the serious gamers are going to go for and the cost for a casual gamer like myself is just too high. Also, as someone who grew up with an Atari that had one joystick and one button, having 2 joy sticks, a D pad, 4 buttons, shoulder buttons and front and back touch control is a bit much. It also seems like the games go out of their way to incorporate all of them even if it doesn't add anything to the game.In short:Lack of gamesFocused at wrong marketAt times needlessly complex$$$$$$$$

The era of charging $30 for a single mobile game is over. Like the record industry, dedicated mobile gaming devices like the Vita and DS will have to evolve to allow more competitively priced downloadable games on their platforms, or they are going to go the way of the audio CD.

I'm honestly surprised that more game companies haven't adopted the model that SEGA did with Sonic the Hedgehog 4, releasing a full game in smaller portions, charging less for the portions, and by the time it's the size of a "full" game, it will still have cost the same to those who don't wait for a discounted price. Instead, they're relying on making a "full" game that in some cases isn't even truly finished, charging full price, then having an expansion immediately available, or forcing players to pay for extras that are already on the disc but locked-down until they pay for the unlock data.

I used the term "full" in quotations in this comment due to the fact that even a small game like Tetris can be considered a "full" game. I'm referring to completeness of a game's intended story.

Sadly while tablets/smartphones are not a replacement for Vita/3DS, they are a 'good enough' replacement to kill it off.

You have to think about the target demographic here. This is a cross-section of people who want to 'game on the go', play serious/hardcore games vs. timekillers, and have money to spend.

Tablets/smartphones will nevre be just as good for an equal level of games becaues of the lack of propre controls, but they are good enough to make most potential buyers go 'eh, i can do without'

My guess is the remaining population, even at a 199 pricetag, would not be meaningful enough to support solid hardware (which is the point in the first place)

Maybe the focus should be on building hardware that can attack ato your iOS/Android device (one version for iOS, 1 for Android?). All you would need are two ends that have controllers and a universal(ish) attachment mechanism in the middle to grab the device. Now as long as I am talking about incredibly complex things as if they were super simple, let me tell you all how to end wars. =P